Right, you are getting confused!
There are six different ways you can format the XBIT, you can have 1 x 2mb block, 2 x 1mb block and so on. This is just the format to determine what size bios you can flash to the XBIT.
Now the dip switches are for selecting the block that you have your bios in.
If you only use a 2mb bios in bank 1, the dip switches do not need to be changed and the first 3 stay in the OFF / OFF / OFF position as the fourth dip switch is for stealth mode (To Turn The Chip Off)
If you are using bank 2, which i think you are then you have two choices of the way the dip switches can be set, for instance if you want to boot the bios from the 1st block in bank 2, then the dip switches will be in the OFF / OFF / OFF position as they are for the first block of any bank that you have formatted. If you want to boot from the 2nd block of bank 2 then the dip switches need to be in the ON / OFF / OFF postion. This is the same for every 2nd block of any bank.
The dip switch positions are actually in the bottom right hand corner of the flashing software screen. But just in case they are the following:-
Block 1 - OFF / OFF/ OFF
Block 2- ON / OFF / OFF
Block 3 - OFF / ON / OFF
Block 4 - ON / ON / OFF
Block 5 - OFF / OFF / ON
Block 6 - ON / OFF / ON
Bank 1 uses Block 1
Bank 2 uses Block 1 & 2
Bank 3 uses Blocks 1 , 2 & 3
Bank 4 uses Blocks 1, 2, 3, & 4
Bank 5 uses Blocks 1, 2, 3, 4, & 5
Bank 6 uses all of the blocks.
I hope this has clarified the use of the banks and blocks, and how to boot different bios's from different slots.